USS Retirement Question

ussdave

That's definitely my plan...assuming it's still an option in 15-20 years

Simes122

PJM_62 said:

FYI

I just had a letter back from USS answering a question I had. In it, it was highlighted to me that
"If you intend to retire on or after 1 April 2022, the option to convert your IB savings into additional RIB pension will no longer be available."

Interesting!  That’s a significant change that sounds like it’s being very quietly introduced.  While the IB into additional pension is poor value, and the reverse is good value just now, I wonder what other significant changes they’ll introduce on that date, quietly!?  At the moment the conversion rates incentiveses one vs the other. If they remove the ability to do IB to additional pension, will the attractive rate for conversion the other way be removed at the same time.  Or be increased!?  Current plans are to retire at end Mar 22 so changes around then could be highly impactful to me!  Is this published anywhere or how on earth can you find out - these are material changes so you’d expect more of a lead in and comms about them.

PJM_62

First i heard of it was in an appendix with the letter.
Which , if this works , you can see here , ..
https://photos.app.goo.gl/5eKiqn8z6SRmHKP58

ussdave

PJM_62 said:

First i heard of it was in an appendix with the letter.
Which , if this works , you can see here , ..
https://photos.app.goo.gl/5eKiqn8z6SRmHKP58

Yup, that worked.

Agreed on the above that it's quite a substantial change so really should've been better (read: at all) communicated or consulted.  But then again, I believe that there's no legal requirement for the trustees to consult on this kind of change.

swindiff

Thanks for the info.  Am i right in thinking that the tax free lump sum from the RIB can still be converted to annual pension?

PJM_62

swindiff said:

Thanks for the info.  Am i right in thinking that the tax free lump sum from the RIB can still be converted to annual pension?

my USS quote included that as an option 👍

swindiff

Just out of interest what was the conversion rate.  I noticed the rate for converting investment builder to annual pension was close to 40 the last time I checked.

PJM_62

swindiff said:

Just out of interest what was the conversion rate.  I noticed the rate for converting investment builder to annual pension was close to 40 the last time I checked.

RIB > Pension 50.17
IB > 46.72

no great

swindiff

That is poor. Last time I checked I seem to remember is was in the mid 20s 

PJM_62

swindiff said:

That is poor. Last time I checked I seem to remember is was in the mid 20s 

yeah i had a quote 2 years ago when it was about 20k of TFLS buys an extra 1k pension

changed end last year i think